Cryptocurrency, the most recent trend, and the most popular digital currency has sparked much debate in the financial sector. Over the years, some investors have speculated that Bitcoin could be the next gold, while others have countered with so much proof. In this article, we’ll review the cryptocurrency regulations and their effects on the investing market.
How the Regulatory Landscape Might Change Cryptocurrency Investing
If you’ve been an emotional cryptocurrency investor, you may have been getting cold feet at every turn because new bitcoin regulations appear almost every season. Some of these restrictions appear to benefit bitcoin, while others raise worrying concerns.
Since the collapse of the cryptocurrency market (2018), when it collapsed by 80%, a lot has been happening among investors, most notably, the government.
Essentially, the government has had a significant role in this legislation, which is why many investors and the crypto market are both optimistic and pessimistic about the outcome.
However, the game of cryptocurrencies may change for the better due to several regulations on the industry. First, let’s look at how some countries’ decisions and regulations may affect cryptocurrency investing. In addition, we will discuss the benefits of cryptocurrency regulations.
Cryptocurrency Regulations and Effects in the United States
In the United States, the government has risen to support crypto exchange activities by developing specific new rules from the Office of the Comptroller of the Currency in the US. The latest news is that the United States uses cryptocurrencies to make banking more convenient for users.
Furthermore, the Financial Crimes Enforcement Network proposed legislation to enforce the balance of the regulations, which include:
Customers’ transactions exceeding $10,000 must be reported for documentation. Transaction type, and time will be notified, and financial businesses must comply. With anti-money laundering regulations for transactions between $3,000 and $10,000.
Cryptocurrency Regulations in Turkey
On April 30th, 2021, the Turkish government passed legislation barring payment and electronic cash transfer companies from doing bitcoin transactions.
As a result of the rapid rise in bank fraud, financial crimes. So, tax evasion using cryptocurrencies as a cover, Turkey has increased and banned virtual assets.
However, this does not rule out the option of investing in Turkey. As Turkish exchanges may still allow you to exchange cryptocurrencies for other assets such as digital and traditional currencies. This statement means that you can still buy Ethereum, bitcoin, and other cryptocurrencies.
Cryptocurrency Regulations in the United Kingdom
Previously, the government permitted cryptocurrency in the country until the year 2020. On the other hand, Crypto assets are regarded as property rather than legal tender in the United Kingdom. Where there is no particular cryptocurrency legislation.
All blockchain investments are prohibited in the country as of January 2021. This action was to prevent illegal money laundering. According to the Financial Conduct Authority (FCA). Customers can now save up to $70 million to protect themselves from market volatility. So, according to the Financial Conduct Authority (FCA).
Cryptocurrency Regulation in China
Investor protection and fraud prevention are the top priorities for Chinese regulatory agencies. Accordingly, the government took initiatives to combat serious fraud, including financial fraud and the laundering of illicit funds.
The People’s Bank of China (PBOC) banned cryptocurrency transactions in financial institutions in 2013. Also, it went even further in 2017, banning initial coin offerings (ICOs) and domestic cryptocurrencies.
To this effect, Cryptocurrencies are not legal tender in China. Also, the rule applies to third-party merchants, who are prohibited from selling or buying digital assets.
Cryptocurrency Regulation in Australia
Since 2017, cryptocurrency is legal in Australia under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. However, the government has indicated that bitcoin is a property. This implies that it will be with a tax in the same way as other assets.
Every cryptocurrency must also be in a count an asset in the cryptocurrency market.
Cryptocurrency exchanges are legal in Australia, but they must register with AUSTRAC ( the Australia Transaction Reports and Analysis Centre).
As a result, all investors should heed one key point in all of the regulations: security. Unfortunately, however, it appears that the cryptocurrency market is trembling due to various banks in various countries affecting Bitcoin, Ethereum, and others.
Also, while it may appear that the prices of cryptocurrencies like Bitcoin are changing, the good news is that the government is concerned about investor safety.
Cryptocurrencies are controlled in various countries due to their volatility. So, fraudulent acts, and new out-market taxation.
All of the regulations have the effect of strengthening and benefiting cryptocurrencies. Most countries that continue to trade virtual assets are now doing well by robust security-based systems. Such as (Know-Your-Customer) KYC for investors, which protects their wallets from fraud and unlawful acts. As a result, investors will have more confidence in the crypto market as a result of this.